Bitcoin shows indecision as markets await earnings from Apple, Amazon and the Meta platform

by James · July 25, 2022

Bitcoin BTC/USD fell about 3% lower on Monday after rejecting the 200-day simple moving average on the weekly timeframe for the sixth straight week.

The top crypto was also trading in an inner bar pattern on the weekly chart, in sync with the S&P 500, which was settling into the same formation but on the daily chart. A big week ahead of earnings is likely to have the market in a state of indecision as the reactions to a few major tech companies publishing results this week are likely to influence future direction across multiple sectors.

Some of the biggest companies reporting this week include Alphabet Inc GOOG GOOGLE on Tuesday, Meta Platforms, Inc META on Wednesday and Apple Inc AAPL and Amazon.com, Inc AMZN on Thursday.

Bitcoin and many other coins and tokens in the cryptocurrency sector have often traded in sync with the general markets recently, suggesting that big tech earnings can greatly influence the price action of Bitcoin, even if the companies are not directly related to the crypto sector . through their business practices.

Bitcoin is currently showing indecision, with a mix of bullish and bearish signs, which likely means many more conservative traders and investors are sitting on the sidelines.

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The Bitcoin Chart: Bitcoin is trading in an uptrend on the weekly chart, but a downtrend on the daily chart. On the daily chart, Bitcoin’s last low was formed at $23,036.46 during Sunday’s 24-hour trading session, and the last confirmed lower low was printed at $21,941.01 on Saturday.

Bitcoin is also trading within a descending channel pattern on the daily chart, making the series of lower lows and lower highs between two parallel trend lines. The pattern is considered bearish until a stock or crypto breaks out of the upper descending trend line of the formation on higher-than-average volume, which may indicate that a major reversal to the upside is on the horizon.

If Bitcoin closes the trading session near today’s low, the crypto will press a bearish Marubozu candlestick, which could indicate that lower prices will return during Tuesday’s session. If the cryptocurrency goes down again on Tuesday, traders can look for Bitcoin to turn on the lower descending trend line of the channel.

The decline during Monday’s session occurred on lower-than-average volume, indicating consolidation as opposed to fears of a selloff. At press time, Bitcoin’s volume on Coinbase measured around 14,000 compared to the 10-day average of 20,111.